India’s apparel exports have shown a decline of 10.25 per cent for the month of February 2018 against the corresponding month of February 2017, as per the latest trade data released. The Indian RMG exports were to the tune of $1.44 bn (approx.) in February 2018 against the corresponding month of February 2017, which was $1.60 bn (approx.). In rupee term export for the Month of February 2018 was Rs. 9275.08 cr. as against Rs. 10767.74 cr. in February 2017 with the decline of 13.86 per cent.
Talking about the decline in exports, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) said, “For the period Apr- February 2017-18, there has been a drastic decline of 10.25 per cent, in the apparel exports. Already Apparel production is on a declining curve with industry registering decline of 10.4 per cent in the apparel production for the period Apr- Jan 2017-18. On the other hand for the period July 2017-February 2018, apparel exports from Bangladesh have registered an 8.68 per cent improvement over last year. Given the kind of uncertainty which has been prevailing due to US challenging India’s export subsidy program at WTO, We are seriously worried about the future of the industry. Exports are on a continuous decline since October 2017.”
AEPC is also worried about the fact that US has filed a complaint at the WTO about India’s export subsidy programmes like Merchandise Exports from India Scheme, Export Oriented Units Scheme, Export Promotion Capital Goods Scheme etc. Talking about the complaint filed by US, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) said, “The fact that US has filed a complaint at the WTO about India’s export subsidy programmes has turned the heat further on India. The withdrawal of Export subsidies is only going to benefit countries like Bangladesh which is already showing consistent growth in their RMG exports. It is a drastic situation and we would like to request the government to intervene immediately to redress the situation and also allow the release of the refunds as until refunds start flowing, things will not improve both on the production as well as export front.”
While India’s RMG export to World in the April-February of 2017-18 was to the tune of Rs. 15.22 bn. (approx.) which has decreased by 2.19 per cent compared to the same period of previous financial year. During April-February 2016-17, India’s apparel exports were to the tune of Rs. 15.55 bn (approx.). The exports of RMG from Bangladesh for the period of July 2017-February 2018 stood at $ 20.25 bn, which is an increase of 8.68 per cent improvement over previous year’s figure of $18.6 bn, as per the data released by Export Promotion Bureau (EPB) of Bangladesh.